Optimal Levels of Embeddedness

Co-location of industry professionals often leads to development of
collaboration networks, and multiple studies have emphasized the benefits of
embedded collaboration. Due to higher levels of trust, embedded collaboration
reduces transaction costs and facilitates ready knowledge exchanged. Other
studies have pointed to dangers of over-embeddedness. The argument is that
too high levels of embeddedness lead to habitual thinking, preferential
treatment, and thereby mitigate performance. However, research on the
conditions under which embeddedness in different types of collaboration
networks primarily yields costs or benefits still leaves much to be investigated....